Northrim Bancorp (NRIM) AI Stock Analysis

• Market Cap: $469.65M
• Dividend Yield: 5.22%
• Average Volume (3M): 178.04K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.07
• Revenue Growth: 27.34%
• EPS Growth: 39.43%
• Country: US
• Employees: 503
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.52
• Shares Outstanding: 22,090,668
• 10 Day Avg. Volume: 186,370
• 30 Day Avg. Volume: 178,039
• PEG Ratio: 0.24
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 2.19
• P/FCF Ratio: -45.91
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 3.18
• Enterprise Value/Ebitda: 9.12
• 1Y Price Target: $24.50
• Price Target Upside: 14.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $24.50 ▲(14.70% Upside)

Northrim Bancorp's strong financial performance is the primary driver of its score, supported by solid revenue growth and profitability. The stock's valuation is attractive with a reasonable P/E ratio and high dividend yield. However, technical indicators suggest potential short-term weakness, which slightly offsets the overall positive outlook.

Northrim Bancorp Business Overview & Revenue Model

Company Description

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates in two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and text banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, business employee purchase cards, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage brokerage services. As of January 28, 2022, the company operated 17 branches in Anchorage, the Matanuska Valley, Soldotna, Juneau, Fairbanks, Ketchikan, and Sitka. Northrim BanCorp, Inc. was founded in 1990 and is headquartered in Anchorage, Alaska.

How the Company Makes Money

Northrim Bancorp generates revenue primarily through interest income from loans and interest-earning assets. The company offers various loan products, including commercial loans, residential mortgages, and consumer loans, which are a significant source of interest income. Additionally, Northrim earns non-interest income through fees associated with account services, mortgage origination, and investment management services. The bank also invests in securities to generate interest income. Partnerships with local businesses and community organizations enhance its service offerings and customer base, contributing to its overall earnings. The company strategically focuses on the growing Alaskan economy, which is critical to its revenue model.

Northrim Bancorp Financial Statement Overview

Summary

Northrim Bancorp exhibits strong financial health with consistent revenue growth, robust profitability, and improved cash flow generation. The balance sheet remains stable, though increasing debt levels warrant attention. The company is well-positioned in the regional banking sector, with a solid foundation for future growth.

Income Statement

Northrim Bancorp has demonstrated strong revenue growth with a 7.19% increase in TTM, indicating a positive trajectory. The company maintains healthy profitability with a gross profit margin of 79.07% and a net profit margin of 20.13% in TTM. EBIT and EBITDA margins are also robust at 26.15% and 27.56% respectively, showcasing efficient operations. However, the slight decrease in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.28 in TTM, indicating moderate leverage. Return on equity is strong at 16.35%, highlighting effective use of equity to generate profits. The equity ratio stands at a solid 8.95%, suggesting a sound capital structure. However, the increase in debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals significant improvement with a free cash flow growth rate of 263.56% in TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio of 6.70 and free cash flow to net income ratio of 1.01 reflect strong cash conversion efficiency. Despite past fluctuations, the recent positive trend in cash flow metrics is encouraging.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	222.83M	195.96M	158.33M	134.41M	136.87M	140.04M
Gross Profit	176.20M	151.93M	125.79M	127.35M	137.19M	131.56M
EBITDA	61.41M	50.60M	34.92M	41.66M	52.47M	46.75M
Net Income	44.85M	36.97M	25.39M	30.74M	37.52M	32.89M
Balance Sheet
Total Assets	3.24B	3.04B	2.81B	2.67B	2.72B	2.12B
Cash, Cash Equivalents and Short-Term Investments	473.15M	541.35M	756.47M	936.38M	1.07B	363.60M
Total Debt	80.41M	40.84M	33.08M	34.27M	35.78M	37.51M
Total Liabilities	2.95B	2.77B	2.57B	2.45B	2.49B	1.90B
Stockholders Equity	290.22M	267.12M	234.72M	218.63M	237.82M	221.57M
Cash Flow
Free Cash Flow	47.81M	-9.35M	32.61M	74.28M	109.48M	-39.72M
Operating Cash Flow	47.44M	-8.73M	38.92M	78.12M	111.99M	-36.45M
Investing Cash Flow	-271.49M	-197.63M	-254.92M	-405.57M	-159.09M	-382.82M
Financing Cash Flow	310.91M	150.56M	75.33M	-58.98M	576.96M	439.82M

Northrim Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRIM, the sentiment is Negative. The current price of 21.36 is below the 20-day moving average (MA) of 22.38, below the 50-day MA of 22.04, and above the 200-day MA of 20.79, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 35.82 is Neutral, neither overbought nor oversold. The STOCH value of 8.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NRIM.

Northrim Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCBX	79 Outperform	$510.09M	12.47	11.46%	―	10.44%	62.82%
FBIZ	77 Outperform	$413.55M	8.84	13.79%	2.23%	8.45%	21.74%
GCBC	75 Outperform	$372.21M	11.95	13.04%	1.68%	13.07%	25.72%
NRIM	72 Outperform	$469.65M	10.62	16.69%	5.22%	27.34%	39.43%
FFIC	64 Neutral	$459.72M	-11.55	-5.09%	6.40%	-7.00%	-233.54%
COFS	62 Neutral	$421.92M	22.65	3.27%	3.94%	38.01%	-58.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%